Citi Trends extends credit facility to 2026, doubles amount to $100 million

By Rebecca Melvin

Concord, N.H., April 15 – Citi Trends Inc. finalized a five-year extension of its existing credit agreement and increased the facility amount to $100 million from $50 million, according to an 8-K filed with the Securities and Exchange Commission.

The $100 million facility’s maturity was extended to April 15, 2026 from Aug. 18, 2021. It includes a $25 million uncommitted accordion feature that under certain circumstances could allow the company to increase the size of the facility to $125 million, and in addition, certain covenants and reporting terms of the facility were modified.

Borrowings will bear interest at a rate of Libor plus 125 basis points, 150 bps or 175 bps, depending on the average daily availability.

Citi Trends subsidiary Citi Trends Marketing Solutions Inc. is guarantor of the third amended credit facility, and Bank of America NA is lender.

The third amendment dated April 15 remains secured by the company’s inventory, accounts receivable and related assets, but not its real estate, fixtures and equipment. The credit agreement contains one financial covenant, a fixed charge coverage ratio, which is tested only in certain circumstances.

The discount retailer is based in Savannah, Ga.

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